Every few days, Digit checks your spending patterns and moves a few dollars from your checking account to your Digit account, if you can afford it. Easily withdraw your money any time, quickly and with no fees. Yes, you can set recurring bank savings transfers, but then you would have to figure out what amount would work for you on most weeks. Digit automatically figures out when and how much is safe to save based on your lifestyle.
One thing I was worried about when I signed up was if my information was safe, and if the money in my Digit account was insured. Thankfully, Digit uses state-of-the-art security measures. Your personal information is anonymized, encrypted and securely stored. All funds held within Digit are FDIC insured up to a balance of $250,000.
I thought perhaps there would be some sort of fee for using this service, it almost sounds too good to be true! However, Digit is completely free. You will see “Hello Digit Inc” transactions in your checking account but these transactions are just transfers to and from Digit.
Here are the steps to get started:
1. Connect your bank account
To use Digit, you need to connect your checking account. This allows Digit to analyze your income and spending, and find small amounts of money it can safely set aside for you.They use 128-bit bank-level security, and they don’t store your bank login. They work with many banks and credit unions – even my small local one was in the Digit network!
2. Digit saves a little every week
Every 2 or 3 days, Digit transfers some money (usually $5-50) from your checking account to your Digit savings. They never transfer more than you can afford, so you don’t have to worry about over-drafting your account. In fact, they have a no-overdraft guarantee.
3. Access your savings anytime
They know you’re saving for good reasons – a trip, a big purchase, or even just a rainy day. When you need your savings, send Digit a text message. Digit will transfer the money from your Digit savings back to your checking account next business day.
Digit allows unlimited transfers, with no minimums, and no fees.